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PETALING JAYA: MR DIY Group (M) Bhd is offering 941.49 million new and existing shares for sale under its initial public offering (IPO) as it seeks to list on the main Bursa Malaysia market.
The listing had been postponed twice: late last year and in the first half of this year due to the Covid-19 motion control order.
In a statement, the home improvement retailer said the institutional offering consisted of 779.95 million shares and a retail offering of 161.53 million shares.
Of the institutional offering, it comprised 470.74 million shares offered to approved bumiputra investors and 309.21 million existing shares to institutional and selected Malaysian investors, foreign and selected institutional investors outside the United States, and qualified institutional buyers in the US. USA
The retail offering comprised 36 million new shares for directors and employees and 125.53 million new shares for the Malaysian public.
According to Bloomberg, the IPO aims to raise around US $ 500 thousand (RM2.1bil).
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Since incorporating the group’s first store in 2005, MR DIY has grown to become the largest home improvement retailer in Malaysia with an estimated 29.1% market share in 2019 based on its revenue for the financial year ending December 31, 2019.
As of September 6, the group operated 640 stores in Malaysia and four stores in Brunei under the MR DIY brand, with a further 28 stores in Peninsular Malaysia under the MR TOY brand.
Yesterday MR DIY signed an underwriting agreement with CIMB Investment Bank Bhd (CIMB IB), Maybank Investment Bank Bhd (Maybank IB), RHB Investment Bank Bhd (RHB IB) AmInvestment Bank Bhd, Hong Leong Investment Bank Bhd (Hong Leong IB) and Kenanga Investment Bank Bhd
(Kenanga IB).
CIMB IB, Maybank IB and RHB IB are the jointly managed underwriters and joint underwriters.
As for AmInvestment Bank, Hong Leong IB and Kenanga IB, they are the joint underwriters for this listing exercise.
In addition to being jointly managed underwriters and joint underwriters, CIMB IB and Maybank IB are also the joint lead advisers, joint global coordinators and joint book brokers, while RHB IB is also the joint global coordinator and joint book broker.
Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Ltd, JP Morgan Securities plc and JPMorgan Securities (Malaysia) Sdn Bhd are the joint global coordinators and joint reserve brokers. UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch are the joint brokers.
MR DIY CEO Adrian Ong (pictured below) described the underwriting as a major milestone for MR DIY and said it brought the company one step closer to becoming a listed entity.
“Although markets have been severely affected by the Covid-19 pandemic in recent months, we have persevered as a group and are pleased to have this opportunity to embark on our next phase of growth.
“Leveraging capital markets will help accelerate our growth plans as we continue to expand our store network to capitalize on Malaysia’s under-penetrated home improvement retail sector. This should further strengthen MR DIY’s position as the largest home improvement retailer in Malaysia. “
The MR TOY brand focuses on affordable toys and other products for children and babies.
In August, the group developed and launched a new store concept called MR DOLLAR that caters to consumer demand for food and beverage, and essential household products for the mass market, with all products priced at fixed prices of RM2.00 or RM5. .00.
“MR DOLLAR would further complement the group’s existing brand portfolio and expand the range of products offered by the group as a whole,” he said.
CIMB IB CEO Jefferi M Hashim said: “CIMB is proud to be on the MR DIY list in Bursa Malaysia’s core market.
“We believe that MR DIY has a competitive advantage and a strong stronghold in the Malaysian home improvement retail sector.”
Maybank IB CEO Fad’l Mohamed said the bank is proud to support local businesses to access the capital market.
“Despite the difficult conditions, we have seen great interest from investors, both local and foreign.
“This is a testament to MR DIY’s unique positioning in the retail sector, along with its broad product offering,” he said.
RHB IB CEO Robert Huray said: “MR DIY’s IPO has received great interest from institutional investors thanks to strong business fundamentals, historic returns and market leadership. RHB is pleased to play an integral role in MR DIY’s initial public offering exercise. “
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